The Disruptors Secrets Of Silicon Valley


The Disruptors

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So this is it, Silicon Valley.

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There's Google just down here.

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Tesla, Apple's headquarters, Facebook.

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And over there in the distance you've got San Francisco.

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Airbnb, Uber, Twitter, all based over there.

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It's absolutely unbelievable.

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The tech gods here are selling us all a brighter future.

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We are one global community.

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With the technology in our pockets, we can reclaim our cities.

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We don't want to be part of the problem.

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We are and will continue to be part of the solution.

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But Silicon Valley's promise to build a better world

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relies on tearing up the world as it is.

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They call it disruption.

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My name is Jamie Bartlett.

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I'm a tech writer.

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I want to discover what the reality is

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behind Silicon Valley's utopian vision.

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Across the world, some communities are fighting back

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against Silicon Valley's disruption.

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But what are the consequences for the rest of us?

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If the world really does end,

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there's not going to be a lot of places to run.

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VOICEOVER: This former Facebook insider fears for the future.

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Within 30 years, half of humanity won't have a job.

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And it could get ugly. There could be a revolution.

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That's why I'm here.

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This is the story of the disruptors of Silicon Valley

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and whether their promise to build a better world

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could end up destroying everything.

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The tech gods are promising us a sunny utopia.

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But could the forces they're unleashing

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actually herald a much darker future?

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In the postapocalypse,

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the 5.56mm round will be the currency

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of the new America. I guarantee you.

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It's not at all what I expected.

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Up close, Silicon Valley looks so normal.

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Even a touch boring.

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What is it that makes this place

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such a force for change in all our lives?

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That's it.

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Wow.

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So this place here...

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..is Rainbow Mansion.

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It's an intentional community

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of people working to optimise the galaxy.

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So it seems like a pretty good place to start.

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The mansion is home to a bunch of global nomads

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who've come to Silicon Valley to pursue their dreams.

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-Jeremy?

-Hey.

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-I'm Jamie.

-Welcome to Rainbow.

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VOICEOVER: Jeremy Swerdlow is a virtual reality hardware designer

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and my guide.

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So could you show me a little bit around?

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Yeah. There are people working on stuff all over this house.

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Technology has been democratised in a way that it never has been before.

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People just need a laptop,

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you can start an entire company just on a laptop.

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Let me take you into the garage.

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-Or the lab.

-The lab?

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You can't have a garage in Silicon Valley,

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it's got to be a lab.

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So the rule here is if your car isn't broken, it can't be in here.

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This is, this is for building, this is for start-ups.

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This is for hardware and making prototypes and building stuff.

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Garages play a crucial role in the mythology Silicon Valley

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weaves around itself.

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Everyone remembers how

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Hewlett-Packard began in this one.

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Apple started in this one.

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And Google's early days were here.

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-What is it that you're doing?

-So I'm working out how to do CO2 conversion

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using ultraviolet energy from the sun.

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You can reverse climate change, you can terraform Mars...

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Reverse climate change!

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Yeah.

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Chemically, it's totally possible.

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This is called the hyper loop.

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Hyper loop is a new type of transportation system.

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You shoot at very high speed inside a tube

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and you can connect cities in a very short amount of time.

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But you must believe that technology like this is,

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in the end, it's going to help people,

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-it's going to help the world?

-Yeah, of course.

-Yeah.

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We are explorers, we are pushing boundaries, discovering new worlds.

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Every Sunday night, the mansion hosts expert speakers.

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People come from all over Silicon Valley to share ideas.

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You can't move without falling over a plan

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to solve one of the world's pressing problems.

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Our hamburger, the impossible burger, made from plants,

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uses a small fraction of the land,

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the water, and the greenhouse gas emissions

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that a traditional burger would use.

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We're looking to change the whole food system in the US.

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And the world.

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Among this slightly cultish crowd

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I found a man who scaled the heights of Silicon Valley.

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Bill Hunt created five start-ups he sold for half a billion dollars.

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What do you think the attitude here is to change and to changing things,

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changing how industries work, changing how society works?

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There's a lot of that.

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There's a lot of focus on disruption.

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VOICEOVER: Here it is. The most potent idea

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at the heart of Silicon Valley's ideology.

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Disruption.

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There is a mind-set here that's very focused on disruption.

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What can you do such that you're not just talking about

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how we can make money,

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but how can we do things in a new way, in a better way,

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that makes the world better, both financially and socially?

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It's thinking about, like, how do we get rid of this previous industry,

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this previous architecture, this previous system

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and find a new way to do it, a way that's better?

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The quantum properties of different matter can be in a superposition,

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meaning that they are...

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This place is kind of

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what the dream of Silicon Valley is, I suppose.

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The... The idea that just armed with a bit of technology

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and a thought about how to change the world,

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you can actually make it happen.

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You can completely transform the way things are done.

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And that you can use technology in a way that will radically improve

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the lives of millions of people.

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And I think they really all believed in that as well.

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The same fervour can be heard from the tech gods too.

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In Silicon Valley, it's got a really positive association.

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To be disruptive means you're changing the world.

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It all sounds so hopeful.

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But behind Silicon Valley's ideals of disruption

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is a more traditional business reality.

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Cold, hard cash.

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Start-ups are drawn to Silicon Valley

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because of another vast industry -

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venture capital.

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Financiers who gamble billions of dollars on young companies

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in the hope of finding another Facebook or Google.

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But investment has a consequence.

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The founders of the two most valuable start-ups here,

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Airbnb and Uber,

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have attracted billions of dollars of venture capital.

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Even though Airbnb has only just begun to turn a profit

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and Uber has been losing billions.

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Maybe more than profit,

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venture capitalists want to see the potential for profit.

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And that creates a huge pressure on these companies

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to show that they're always growing.

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Increasing the number of customers as quickly as possible -

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"killing it", as they say here - is the start-up mantra.

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But what does it mean for Silicon Valley's mission

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to build a better world?

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San Francisco.

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Home of tech's newest disruptors,

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Uber and Airbnb.

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It is a city of extremes.

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Private buses take tech workers to Silicon Valley.

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Not far away,

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food queues and the very different lives of those left behind.

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I'm here to meet the tech company that has raised more money than

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any other, more than 16 billion.

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Uber's not even a taxi company at all, really.

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It's a sort of revolutionary new type of transportation network.

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There's this fundamental need to make transportation better,

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to make getting around cities better.

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You're talking about literally taking congestion off the road,

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you're talking about taking pollution out of the air.

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Founder Travis Kalanick's utopian vision sounds persuasive.

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But scandals over sexism and bullying finished him off as CEO.

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There he is.

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Just eight years old,

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the company operates in more than 450 cities across 76 countries.

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So what's the truth about the kind of world Uber is building?

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I'm meeting Uber's head of transportation policy.

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-Welcome.

-Wow, it's huge!

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What is the aesthetic?

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Open. I think. Open-plan.

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Food.

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So tell me a bit about

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what the kind of vision of Uber is.

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Yeah. I mean, the vision is getting away from everybody needing

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to drive their own car everywhere they go.

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Right, if you look at a place like the US,

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where the overwhelming majority of travel is done by people driving

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their own car, and that has lots of consequences.

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Not just in terms of the number of vehicles people need to own,

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but how cities are designed and laid out.

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Everything from the amount of parking that we have,

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to the amount of fatalities on the road, to environmental impact.

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VOICEOVER: There it is.

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A pure expression of Silicon Valley utopianism.

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Is this a profit-making company, or is it a social mission, then?

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-What is this?

-That's what's nice about it.

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I think by driving the business towards supporting people

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into shared cars... Right, there's a profit-making incentive there,

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obviously we're here to make money as a private business.

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But as you start to get into different places

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and you change how people use vehicles,

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then you have all these other effects that you start to open up.

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In Silicon Valley, there is no contradiction

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between chasing a healthy profit

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and claiming to be working for the good of humanity.

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But disruption means what it says.

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Around the world, traditional taxi drivers have protested

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about Uber undercutting their prices.

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It's classic Silicon Valley disruption -

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destroying old industries

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by providing a popular, cheap alternative.

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But the social cost of this disruption goes much further.

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India.

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Home to more than a billion people and Uber's top target

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for global growth.

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I'm in Hyderabad to see the human consequences

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of the disruption cooked up in San Francisco.

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Uber is promising a new kind of flexible job,

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empowering its drivers.

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But the reality has been far less liberating.

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Narasimha and Mahendar were attracted by Uber's pitch.

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With no profits and under huge pressure

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to grow against a strong local rival,

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Uber ran adverts on billboards and in the press,

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promising drivers up to £1,100 a month,

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around four times what these drivers had been earning.

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Car ownership is low in India,

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especially among those likely to drive for Uber.

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So the company helps drivers borrow money to buy new cars.

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Narasimha borrowed around £12,500 to buy a Tata Indigo.

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Mahendar borrowed around £8,000 to buy a Tata Indica.

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As the number of Uber drivers rose,

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the number of customers did not keep up,

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so earnings fell.

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With a ready supply of drivers, the company cut incentives too.

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I'm meeting one family whose lives have been utterly changed

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after Uber's promise turned to a nightmare.

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Mohammed Zaheer worked as a taxi driver.

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When Uber opened up, he couldn't wait to join.

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Was he excited by this opportunity?

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Mohammed borrowed around £8,500 to buy a Tata Indicar.

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Soon his earnings fell, like many other drivers.

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Were you under pressure from,

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from people who lent you money?

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In 2015, Mohammed joined other Uber drivers on strike,

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angry over falling earnings.

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Noorjahan remembers the last time

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she spoke to her husband on the phone.

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A few hours later, Mohammed was found dead.

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Mohammed had hanged himself.

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His body was taken to the Uber offices.

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The company did not respond.

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I mean, after everything that's happened...

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..what do you now think of Uber as a company?

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Two other Uber drivers have killed themselves in Hyderabad.

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A former Uber executive has agreed to talk to me anonymously.

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Do you think you could have been, or should have been, more...

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..open with the drivers about how their salaries or their incentives

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might change in the future?

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I could have been. I would say, yes.

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Obviously, yes. Drivers were misled.

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They're totally misled.

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That is actually causing all the pain for a lot of people.

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The mantra of Silicon Valley is that disruption is always good.

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And through smartphones and digital technology,

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we can create more efficient, more convenient, faster services.

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And everyone wins from that.

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But behind that beautifully designed app,

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or that slick platform,

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there's a quite brutal form of capitalism unfolding,

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and it's leaving some of the poorest people in society behind.

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In a statement, Uber said their heart goes out to Noorjahan

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and her family. Uber supported the authorities' investigation

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of this case and will continue to do so if requested.

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Uber said drivers are at the heart of what they do

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and they're committed to improving their experience.

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In India, Uber is listening to them and acting on what they learn.

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Back in Silicon Valley,

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I'm realising how much energy the tech titans devote to one thing...

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..presenting themselves as the heroes of the people,

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taking on all kinds of vested interests.

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One of the most remarkable branding tricks of the 21st century

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has been the way that Silicon Valley has managed to persuade us

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that they're not like other companies.

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I mean, when you think about banks or big pharma, oil,

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you imagine them as being driven only by profit.

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And yet Silicon Valley, we imagine, is different.

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They are puffed up with social purpose to improve the world,

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that they're the good guys.

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Dear stranger,

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when I booked this trip, my friend said I was crazy...

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The founders of Airbnb, for example,

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are connecting the world,

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not simply allowing people to advertise holiday lets.

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I just wanted to thank you for sharing your world with me.

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Airbnb, belong anywhere.

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This is Airbnb's global headquarters in San Francisco.

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I wonder whether I'll get another dose

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of Silicon Valley utopianism here.

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We're on our way.

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Chris, I'm Jamie.

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How are you doing? Nice to meet you.

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VOICEOVER: Chris Lehane was once called the master of disaster.

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As Bill Clinton's spin doctor, he managed the Monica Lewinsky scandal.

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Chris is now Airbnb's head of global policy.

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Like all the tech gods of Silicon Valley,

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the founders of Airbnb have their own exulted creation myth.

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Two of the three founders were living in an apartment

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on Rausch Street in San Francisco.

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There was actually an art conference that was coming to the city,

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so they came up with this idea

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that they advertised as air bed and breakfast on a lister

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and, after that weekend,

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a light bulb went over their head, which is,

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maybe there is a business here.

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So, hang on, is this a model of their room?

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This is a model of one of the rooms

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that would have been in the original listing,

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and there's actually something called, up on the fourth floor,

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which I think is around the corner over here, called the founders' den,

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where they actually did their meetings and came up with the idea.

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Today, Airbnb is a global giant, valued at around 31 billion,

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but it doesn't see itself as big business.

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We do like to think of ourselves as a different type of company.

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The founders' initial idea was make money off of what is typically

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your greatest expense, which is your housing,

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to be able to stay in your housing, and that still remains true today.

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You know, over half the people who are on the platform

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are low to moderate income people, regular people.

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They use it to cover basic expenses, including the cost of their housing.

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Airbnb believes its online marketplace is empowering people.

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Our founders, they came up with a real vision here,

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and the vision was to be able to use the platform

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to connect people to people.

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We like to say, we are of the people, by the people,

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for the people, but really they use the platform so that people can

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spend time with one another.

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You think about what's going on in the world today,

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and people are talking about building walls,

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closing doors, putting up barriers.

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A real question of whether we are going to have an open society

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or a closed society, and this is a place

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that is really focused on using technology

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to help create an open society.

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Airbnb claims to be on the side of the little people,

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and the only losers from their disruption

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are traditional hotel owners.

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But that's not how it feels in Barcelona,

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where Airbnb has run into a spot of bother.

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These people have rented an apartment through the website.

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They are not tourists but locals, staging a protest against Airbnb.

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They are angry rents in the city are going up

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as landlords cater more and more to tourists.

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They are increasing the prices of the normal rents in Barcelona.

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The local government is trying to control

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the growth of tourist accommodation in the city.

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All short-term rental properties must be licensed.

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This flat isn't.

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The group prepare a statement they will read from the balcony.

0:23:510:23:54

Before long, the agent managing the property arrives.

0:24:060:24:09

It turns out the agent is managing 13 properties in Barcelona,

0:24:430:24:48

all advertised on Airbnb.

0:24:480:24:49

It's not just Barcelona that has seen protests like this.

0:25:060:25:11

Residents of other cities around the world have also raised fears Airbnb

0:25:110:25:15

is driving up rents and pushing locals out.

0:25:150:25:18

Airbnb has now banned this property agent from the platform

0:25:290:25:33

for breaking their rules.

0:25:330:25:35

These were local protesters that were in the streets,

0:25:400:25:43

unhappy with the way Airbnb was working with the authority,

0:25:430:25:46

and the effects that was having in Barcelona.

0:25:460:25:49

It wasn't large corporations. It was ordinary citizens in the city.

0:25:490:25:52

But that makes the point.

0:25:520:25:53

There isn't a regulatory structure in Barcelona.

0:25:530:25:55

The government, up until recently,

0:25:550:25:58

has resisted actually getting involved, sitting down like we're

0:25:580:26:01

sitting down right now,

0:26:010:26:02

and actually coming up with a regulatory structure that can work.

0:26:020:26:05

In a number of other cities, people have sat down

0:26:050:26:08

and we've figured it out, and it's really working well.

0:26:080:26:11

So, at the end of the day,

0:26:110:26:13

to address something that is a new thing that has come along,

0:26:130:26:16

you actually have to have both sides sit down and figure it out

0:26:160:26:19

and work it through.

0:26:190:26:21

It's a classic argument from the disruptors.

0:26:240:26:27

Regulators, governments, elected politicians,

0:26:270:26:31

they all have to catch up,

0:26:310:26:32

change their policies to take account of the new reality.

0:26:320:26:36

In fact, Silicon Valley seems to have a pretty dim view

0:26:400:26:44

of governments in general.

0:26:440:26:46

That is most evident when it comes to tax.

0:26:460:26:49

-David.

-Hey. Wonderful to meet you.

0:26:490:26:51

-How are you doing?

-Doing well.

0:26:510:26:53

I'm here to see Larry.

0:26:530:26:54

Yeah, we're going to take you right over there.

0:26:540:26:57

You can get an idea of Silicon Valley's attitude to tax

0:26:570:27:00

by looking at how the companies behave in their own back yard.

0:27:000:27:04

Larry. Jamie, how are you doing?

0:27:050:27:07

-Glad to see you.

-What a beautiful office.

0:27:070:27:09

Glad you're here.

0:27:090:27:11

Larry Stone is the assessor for Santa Clara County,

0:27:130:27:17

a friend of presidents and would-be presidents.

0:27:170:27:21

Within a five-mile radius of where we're standing...

0:27:210:27:25

..almost all the major corporations in Silicon Valley -

0:27:270:27:31

Google, Apple, Facebook's about five miles away.

0:27:310:27:35

Companies here pay local property tax at a rate of 1%

0:27:350:27:40

of the value of all their buildings and equipment.

0:27:400:27:44

It's the job of Larry and his team

0:27:440:27:46

to work out the value of this property.

0:27:460:27:49

I'm interested in whether those tech firms tend to disagree

0:27:490:27:54

with what you're saying they owe in tax.

0:27:540:27:56

Many of them do, yes.

0:27:560:27:57

I mean, we have about 70 billion

0:27:570:28:02

of what we call value at risk.

0:28:020:28:06

Sorry, 70 billion?

0:28:060:28:08

Of assessed value at risk.

0:28:080:28:10

What, that's being appealed or disputed by those companies?

0:28:100:28:12

Correct. Correct.

0:28:120:28:14

And about 80% of that are major corporations -

0:28:140:28:18

Apple, Google.

0:28:180:28:20

Larry wants to show me the subject

0:28:250:28:27

of one of his biggest battles over tax.

0:28:270:28:30

Apple.

0:28:300:28:32

When completed, their new headquarters

0:28:320:28:34

will be the most impressive in Silicon Valley.

0:28:340:28:38

Quite the place, huh?

0:28:380:28:39

But why? Isn't this just a public street?

0:28:430:28:46

Why are they so secretive?

0:28:490:28:50

That's the mind-set,

0:28:500:28:53

the culture of the company is secrecy.

0:28:530:28:57

And always has been.

0:28:570:28:58

VOICEOVER: The constant hum of mild paranoia

0:28:590:29:02

is never far away in Silicon Valley.

0:29:020:29:04

But we can...

0:29:060:29:07

These folks are from the BBC.

0:29:090:29:11

No, he's filming me, I think.

0:29:130:29:15

OK.

0:29:150:29:16

Yeah. Well, we're just standing in the street.

0:29:180:29:21

With a mile-long circumference,

0:29:250:29:27

Apple Park will be a modern-day Colosseum.

0:29:270:29:31

Its centre will be a park for Apple staff.

0:29:310:29:34

It's expected to cost more than 5 billion.

0:29:340:29:38

Look at this, the scale of it.

0:29:380:29:40

-Yeah.

-It's for show as well.

0:29:400:29:42

It's like sort of...

0:29:420:29:44

It's like emperors building a new temple to themselves, you know.

0:29:440:29:48

It's sort of vanity.

0:29:490:29:51

It's unbelievable. It's a vanity project.

0:29:510:29:54

If Steve Jobs was here right now, he would love to hear you say that.

0:29:540:29:58

Steve, it's working!

0:29:580:30:00

THEY LAUGH

0:30:000:30:02

Last year, Apple paid nearly 34 million in local property tax,

0:30:020:30:07

the second largest amount in Santa Clara County.

0:30:070:30:10

But it is disputing the largest amount of value,

0:30:110:30:15

covering 2010 to 2015.

0:30:150:30:19

We have 6.8 billion worth of assessment appeals.

0:30:190:30:24

So you said it's worth £6.8 billion.

0:30:240:30:26

Yeah. They say it's worth 57 million.

0:30:260:30:31

-OK.

-That's...

-So they're essentially...

0:30:310:30:34

That's a big... That's a pretty big...

0:30:340:30:37

They are disputing 99% of their value.

0:30:370:30:40

How do you...? How can it be possible that you say,

0:30:400:30:46

this stuff you own is worth nearly 7 billion, and they say,

0:30:460:30:50

no, it's only worth 50 million?

0:30:500:30:52

-How is that possible?

-Well, because that's what they file.

0:30:530:30:56

Now, obviously, it's not worth 57 million.

0:30:560:31:01

So how are they coming up with this number?

0:31:010:31:03

Pulling it out of some part of their anatomy,

0:31:050:31:08

but I don't know if it's the top of their head or is it something else.

0:31:080:31:11

If Apple's appeal succeeds in full,

0:31:130:31:15

68 million of tax would be slashed to just over 0.5 million.

0:31:150:31:21

Apple isn't the only tech titan filing local property tax appeals.

0:31:230:31:27

The company has funded over 70 million of local improvements.

0:31:290:31:33

VOICEOVER: But I wondered what Larry thought all this means for society.

0:31:340:31:38

After all, this local tax pays for schools and other services.

0:31:380:31:42

In the '50s, '60s and '70s, Detroit was the envy of the world.

0:31:430:31:47

Today, Detroit is in bankruptcy.

0:31:470:31:49

We could go the same way if we don't solve our public education

0:31:490:31:53

and if we don't resolve our commitment to the community

0:31:530:31:56

as a people, as citizens and corporations.

0:31:560:32:00

Around the world, tech giants have been accused

0:32:020:32:05

of aggressively minimising their tax bills.

0:32:050:32:08

The EU is demanding Apple pay up to £11 billion of tax

0:32:090:32:14

it says is owed to Ireland.

0:32:140:32:17

But how they deal locally with these issues,

0:32:170:32:19

how they deal locally with their local taxman,

0:32:190:32:22

says something about the culture of these places,

0:32:220:32:25

the general approach of always trying to minimise the tax they pay

0:32:250:32:30

or trying to work around governments.

0:32:300:32:33

It makes a lot more sense

0:32:330:32:36

when you come here and you see how a company like Apple behaves

0:32:360:32:39

in its own back yard.

0:32:390:32:41

Of course, there's nothing new about technological disruption.

0:32:510:32:54

Steam power, electricity,

0:32:560:32:58

production lines destroyed the industries that existed

0:32:580:33:01

before them and forced governments to change.

0:33:010:33:04

The world survived, life got better.

0:33:050:33:08

The question now is whether the Silicon Valley revolution

0:33:080:33:12

is going to be different.

0:33:120:33:14

The big secret in Silicon Valley is that the next wave of disruption

0:33:140:33:19

is not going to be like the last,

0:33:190:33:21

because it could tear apart the way capitalism works.

0:33:210:33:25

And, as a result, the way we live our lives

0:33:250:33:28

could be utterly transformed.

0:33:280:33:30

Early morning on the edge of Orlando, Florida.

0:33:390:33:42

I'm heading into the coming world.

0:33:440:33:47

I'm on my way to do some disrupting with a group of people

0:33:490:33:54

who want to change an entire industry,

0:33:540:33:58

and they might end up changing the whole global economy

0:33:580:34:01

and how it works.

0:34:010:34:02

Our mission begins in the car park of a home improvement store.

0:34:080:34:11

It's not the most obvious place to start a revolution,

0:34:140:34:17

but this one has a certain do-it-yourself quality.

0:34:170:34:21

It's absolutely huge.

0:34:230:34:25

I've never been in a truck before.

0:34:290:34:31

Oh, wow, this is it.

0:34:310:34:33

Yeah.

0:34:330:34:34

VOICEOVER: Meet Stefan Seltz-Axmacher,

0:34:340:34:37

a 27-year-old who's raised 5 million

0:34:370:34:40

with his plan to change the future.

0:34:400:34:43

Tony Hughes is key to Stefan's plan.

0:34:460:34:48

What is this?

0:34:490:34:51

And we've got to get this over to...

0:34:530:34:55

Which is... How far is that?

0:34:560:34:58

All right, so we've got... How long have we got in the truck?

0:34:590:35:03

Well, then, let's do it. All aboard.

0:35:030:35:05

All right.

0:35:070:35:08

Let's go.

0:35:080:35:09

More than three million trucks carry freight on America's highways.

0:35:150:35:18

This truck isn't like the others.

0:35:210:35:24

Tony, is the system good?

0:35:330:35:35

Car check, is the system good?

0:35:360:35:37

OK. Rosebud on, Rosebud on.

0:35:390:35:41

So you're not touching the wheel. I can see the other wheel's moving.

0:35:450:35:48

My God!

0:35:500:35:51

It's quite scary.

0:35:530:35:55

It's just driving itself, man.

0:35:560:35:58

Stefan and his team have made this truck drive itself

0:35:590:36:03

by adding a computer

0:36:030:36:05

that controls the pedals and steering wheel.

0:36:050:36:07

They're hoping, by adapting the huge existing truck fleet,

0:36:090:36:13

they can beat bigger rival companies racing to build expensive

0:36:130:36:17

self-driving trucks from scratch.

0:36:170:36:20

You see, every time it veers a little bit, my heart goes.

0:36:200:36:23

I'm thinking, "Oh, God, it's lost control."

0:36:230:36:25

And then it kind of comes back in again.

0:36:250:36:28

Like, your heart beats just a little bit quicker,

0:36:290:36:31

because you're thinking,

0:36:310:36:33

"Oh, my God, we've got suddenly this huge vehicle that we're all in is

0:36:330:36:36

"being controlled not by the driver but by the computer."

0:36:360:36:40

VOICEOVER: I can't help wondering.

0:36:460:36:48

Trucking is one of the best-paid jobs

0:36:480:36:50

open to people without a degree, but for how long?

0:36:500:36:53

Among America's 3.5 million truck drivers, Tony is a rarity.

0:36:540:36:59

What do they say when you tell them what you're doing?

0:37:010:37:03

They call me a traitor because they say,

0:37:050:37:07

"You're taking our jobs away from us."

0:37:070:37:09

-They call you a traitor?

-Yeah.

0:37:090:37:11

How does that make you feel?

0:37:110:37:13

As long as I'm satisfied with the job that I'm doing out here

0:37:130:37:17

and making lives better for other drivers,

0:37:170:37:19

they can say whatever they want.

0:37:190:37:21

And this will make a difference in drivers' lives.

0:37:210:37:23

Stefan's vision of self-driving trucks still requires drivers.

0:37:250:37:29

They'd be needed to remotely pilot the trucks through busy depots or

0:37:350:37:40

congested cities, on and off the motorway.

0:37:400:37:43

How does it compare now, do you think,

0:37:470:37:49

to if Tony is driving without the...?

0:37:490:37:52

Well, the system still isn't as good as Tony.

0:37:520:37:55

The goal is that it will be better

0:37:570:38:00

than an above average or good driver

0:38:000:38:02

-in the next couple of months.

-Next couple of months!

0:38:020:38:04

-That's what we think.

-That's the speed at which it's improving.

0:38:040:38:08

Because we're focusing on this particular domain.

0:38:080:38:10

It's way easier, it's a way simpler to drive autonomously on the highway

0:38:100:38:15

than to drive autonomously in a neighbourhood.

0:38:150:38:17

There are way fewer variables that happen.

0:38:190:38:21

There's no shortage of ambition in this cab.

0:38:220:38:25

Our plan is to start to take people out of the vehicle on limited routes

0:38:250:38:29

-by the end of the year.

-By the end of the year.

-Yeah.

0:38:290:38:31

But there are some teething problems.

0:38:320:38:34

We've got a team of engineers that are kind of driving with us,

0:38:490:38:52

so we've stopped off in a lay-by, they've jumped out,

0:38:520:38:54

they're checking the pedals, making sure everything is working.

0:38:540:38:57

That's exactly what Silicon Valley's about.

0:38:570:38:59

Once you are out there doing it and you're dealing with real-life

0:38:590:39:02

problems, things going slightly wrong and fixing them up...

0:39:020:39:04

..you can then demonstrate to the world

0:39:060:39:09

that we have made this thing work.

0:39:090:39:10

We're not going to wait around for all the regulations.

0:39:100:39:13

And then, almost

0:39:130:39:15

by virtue of demonstrating its power,

0:39:150:39:19

it forces the world to change around it.

0:39:190:39:21

And I think that's what happens

0:39:220:39:24

when you take this kind of disruption philosophy,

0:39:240:39:27

this idea of Silicon Valley, getting out there,

0:39:270:39:30

changing things and then making the world catch up with them.

0:39:300:39:34

That's why they've conquered the world.

0:39:340:39:36

-We have arrived.

-We've made a delivery in an autonomous vehicle.

0:39:450:39:49

Rosebud drove the truck for more than 100 miles today.

0:39:530:39:56

Spending time with Stefan is a chance to find out if Silicon Valley

0:39:590:40:03

worries about the possible downsides of automation.

0:40:030:40:07

What if it just becomes so efficient,

0:40:080:40:12

that we don't need drivers any more at all?

0:40:120:40:15

Yeah. That's a thing that could happen,

0:40:160:40:18

but we'll definitely find other things to do for work.

0:40:180:40:20

In the 1920s, Keynes thought that by now we'd work a four-hour work week.

0:40:200:40:24

We found a lot of other things to do.

0:40:240:40:26

Social media managers, not a job in the 1920s.

0:40:260:40:29

I think that we will inevitably find more things

0:40:290:40:33

that we need to do as jobs.

0:40:330:40:34

I just, I can't believe how optimistic you are.

0:40:340:40:37

-Yeah.

-I mean, it's great, obviously, but does a little bit of you think,

0:40:370:40:42

"Well, what if, what if there aren't jobs for people?

0:40:420:40:45

"What if this time's different and we can't create the jobs?"

0:40:450:40:49

You can see the possibility of negative outcomes from AI,

0:40:490:40:51

like it would be foolish to say that there was no possibility

0:40:510:40:54

that it could go badly.

0:40:540:40:56

But look at what we, as a species, have overcome.

0:40:560:40:59

You know, whether it's the black plague, whether it's slavery,

0:40:590:41:03

Cold War with the threat of dead-hand nuclear orders, I mean,

0:41:030:41:08

we've come by so far.

0:41:080:41:09

But history may be no guide to the consequences

0:41:120:41:17

of the next wave of disruption.

0:41:170:41:18

What's different about this industrial revolution

0:41:200:41:23

is that Silicon Valley's using data and software

0:41:230:41:27

so machines can learn how to do things better than humans.

0:41:270:41:31

So how far is this going to go?

0:41:330:41:35

I'm meeting a pioneer of another technology

0:41:370:41:39

that will change capitalism as we know it -

0:41:390:41:43

artificial intelligence.

0:41:430:41:44

-What is this?

-One Wheel.

0:41:470:41:49

Well named, huh?

0:41:510:41:52

In the world Jeremy Howard is building,

0:41:530:41:55

it won't just be truck drivers or manual workers

0:41:550:41:58

who stand to be replaced.

0:41:580:42:00

Everyone's job will be precarious.

0:42:010:42:04

You've got to have a go. If you lean forwards, there we go.

0:42:040:42:07

If you lean forwards it goes forwards...

0:42:070:42:09

-Oh, yeah.

-And lean backwards to go backwards.

0:42:090:42:11

And then take your front foot off to stop.

0:42:110:42:13

How are you so good at this?

0:42:130:42:15

-How do I stop?

-Yeah, just lean back and then front foot off.

0:42:150:42:18

Yeah.

0:42:200:42:21

That was awesome!

0:42:210:42:23

Guess where we get started.

0:42:230:42:24

Go through to the garage.

0:42:260:42:29

There's a clue here to how Jeremy is developing artificial intelligence,

0:42:290:42:34

machines that can learn like we can.

0:42:340:42:37

Why do I have Chinese books?

0:42:370:42:38

Well, not because I wanted to learn Chinese,

0:42:380:42:41

but because I wanted to learn how the mind works,

0:42:410:42:43

and the best way to learn how the mind works was to try and learn

0:42:430:42:47

-something difficult.

-Did you learn Chinese to learn how the mind works?

0:42:470:42:50

Right, which I then used that in order to figure out how to implement

0:42:500:42:53

that in machine learning.

0:42:530:42:55

Artificial intelligence is at the heart of the start-up Jeremy

0:42:570:43:01

founded to help combat the shortage of doctors and radiologists

0:43:010:43:05

in the developing world.

0:43:050:43:06

It turns out that figuring out what's wrong with you

0:43:060:43:08

and how to make you better is just a data problem.

0:43:080:43:12

So I was like, all right, I know how to do data problems.

0:43:120:43:14

I don't know anything about medicine, but I know data problems.

0:43:140:43:17

Jeremy uses deep learning software

0:43:180:43:21

to diagnose cancer from medical images.

0:43:210:43:24

The software learns from examples to identify patterns, like we do.

0:43:240:43:29

It spots problems by inferring from what it has learned,

0:43:290:43:33

becoming ever more accurate.

0:43:330:43:35

The software that I built takes about 0.02 seconds

0:43:350:43:39

to look at a CT scan.

0:43:390:43:41

So it can look at a million...

0:43:410:43:42

A human takes, to look at it properly?

0:43:420:43:44

10-15 minutes.

0:43:440:43:45

So we can look at a million CT scans like that, and now,

0:43:450:43:50

and because we're using these neural networks, deep learning, to do it,

0:43:500:43:55

it can literally develop an intuition,

0:43:550:43:57

the same kind of intuition that a radiologist has.

0:43:570:43:59

Within two months, we had something that beat

0:43:590:44:01

the world's best radiologist to diagnose lung cancer.

0:44:010:44:05

-Beat the world's best?

-Yeah, beat a panel of the world's best.

0:44:050:44:08

VOICEOVER: Here, the march of the machines feels unstoppable.

0:44:080:44:11

So this is going to get bigger, isn't it?

0:44:120:44:14

Because deep learning, once it's out and once it's doing this,

0:44:140:44:17

it's not going to stop at medical staff?

0:44:170:44:19

I feel very similarly to how I felt in the late '80s when I saw

0:44:190:44:22

the internet for the first time, and I started looking into it,

0:44:220:44:26

and I started telling people,

0:44:260:44:27

"I think the internet's going to be used for all things."

0:44:270:44:30

When I look at deep learning, I see that...tenfold.

0:44:300:44:34

Jeremy is using technology to make his own work more efficient.

0:44:390:44:44

It turned out that at 0.8 miles per hour,

0:44:460:44:50

I could study for twice as long,

0:44:500:44:53

have half the errors and be twice as fast than no treadmill.

0:44:530:44:58

The next wave of technology could make work more efficient,

0:44:590:45:04

by removing us humans altogether.

0:45:040:45:06

People aren't scared enough, you know?

0:45:070:45:11

Far too many people are sounding like, smart people,

0:45:110:45:15

are sounding like climate change denialists.

0:45:150:45:17

They're saying, "Don't worry about it, there'll always be more jobs."

0:45:170:45:21

And it's founded on this purely historical thing of like,

0:45:210:45:25

"Oh, there's been a revolution before.

0:45:250:45:26

"It was called the Industrial Revolution,

0:45:260:45:28

"and after it there was still enough jobs.

0:45:280:45:31

"Therefore, this new, totally different,

0:45:310:45:34

"totally unrelated revolution will also have enough jobs."

0:45:340:45:37

It's a ludicrously short-sighted and meaningless argument,

0:45:400:45:43

which incredibly smart people are making.

0:45:430:45:46

The totally utopian and dystopian futures are like very clearly

0:45:510:45:57

in front of us. And very clearly we could head down to either.

0:45:570:46:01

Honestly, the status quo -

0:46:010:46:04

do nothing and we end up there - will definitely be a dystopia,

0:46:040:46:08

which is a tiny class of society owns all of the capital

0:46:080:46:13

and all of the data and everybody else has no economic value,

0:46:130:46:18

is despised by the class that has things because they're worthless,

0:46:180:46:23

and massive social unrest.

0:46:230:46:25

It's the first time, I think...

0:46:320:46:33

..I've felt party to this secret,

0:46:350:46:38

that other people here seem to know and seem to talk about,

0:46:380:46:41

whisper about,

0:46:410:46:43

but they sort of cover it up and don't really want to say what it's

0:46:430:46:46

going to be. He was very, very plain about what's happening.

0:46:460:46:49

This technology's exponentially improving,

0:46:490:46:52

it's going to change everything and we ought to be

0:46:520:46:55

pretty afraid about that.

0:46:550:46:56

And to actually hear that...

0:46:560:46:59

..by someone that knows about this stuff...

0:47:000:47:02

..is pretty revelatory.

0:47:040:47:05

I want to know how far those at the top of Silicon Valley

0:47:090:47:13

are really thinking about how automation

0:47:130:47:16

will change all our lives.

0:47:160:47:18

Finally, I've arranged to meet one of the tech gods themselves,

0:47:210:47:26

a man who wields huge power here behind the scenes.

0:47:260:47:30

Sam Altman is considered,

0:47:310:47:33

I think more than anybody else in Silicon Valley,

0:47:330:47:35

to be able to predict the future.

0:47:350:47:37

He's like a kingmaker in Silicon Valley.

0:47:370:47:40

He gets to choose what the big companies of tomorrow will be.

0:47:400:47:44

Having him support your tech start-up,

0:47:440:47:48

is considered to be one of the greatest badges of honour

0:47:480:47:51

that you can get in Silicon Valley.

0:47:510:47:53

Sam runs this place - Y Combinator.

0:47:550:47:58

A company that nurtures start-ups with money and advice.

0:47:580:48:02

Better not park in Sam Altman's place.

0:48:030:48:05

Its companies are now valued at 80 billion,

0:48:050:48:08

including its biggest success, Airbnb.

0:48:080:48:12

-Hi.

-Nicole?

-I'm Nicole.

0:48:120:48:14

-Hi, I'm Jamie.

-Nice to meet you.

0:48:140:48:16

How are you doing? Nice to meet you.

0:48:160:48:18

-Thanks for having us.

-So great to be here.

0:48:180:48:20

VOICEOVER: Sam's time is carefully allotted.

0:48:200:48:22

I just kind of wanted to go over the flow,

0:48:240:48:26

because Sam only has 35 minutes to meet with you today.

0:48:260:48:29

-Is he very busy?

-Yeah.

0:48:290:48:30

So we can walk in and I can introduce you to everybody,

0:48:300:48:32

and then you can interview Sam on the couch for 35 minutes.

0:48:320:48:36

OK.

0:48:360:48:38

She's just setting up now.

0:48:410:48:43

Yeah?

0:48:480:48:49

-Welcome to Y Combinator.

-Thank you for having us.

0:48:550:48:58

-Sam, I'm Jamie.

-Very nice to meet you.

0:49:000:49:02

Nice to meet you.

0:49:020:49:03

Sam Altman co-founded his first business when he was 19.

0:49:050:49:09

After dropping out of university,

0:49:100:49:12

he sold it for more than 40 million.

0:49:120:49:15

He's now 32.

0:49:150:49:17

You're considered, I think,

0:49:170:49:19

in Silicon Valley as one of the people

0:49:190:49:21

that sees the future better than most.

0:49:210:49:24

So, what are you seeing?

0:49:240:49:26

A friend of mine says the best way to predict the future

0:49:280:49:31

is to invent it.

0:49:310:49:33

And that is a thought that has always stuck with me.

0:49:330:49:35

Sam is thinking hard about what the future could be like

0:49:370:49:41

after automation takes away the jobs of millions of us.

0:49:410:49:44

We're going to need to have new redistribution,

0:49:460:49:48

we're going to need to have new social safety nets.

0:49:480:49:51

One thing, one product that I'm funding

0:49:510:49:52

that we're doing at Y Combinator

0:49:520:49:54

is to study basic income,

0:49:540:49:55

and what happens if you just give people money to live on.

0:49:550:50:00

Because we have this world, we have huge wealth,

0:50:000:50:03

but it's very concentrated.

0:50:030:50:04

What happens if you just give people money and say, you know,

0:50:040:50:07

here's enough money to have a house and eat and to have fun?

0:50:070:50:11

Do you think people would find fulfilment and all the other things,

0:50:110:50:16

dignity in work for example,

0:50:160:50:18

under a system where there's a small number of very rich people

0:50:180:50:24

and they're being given money to...

0:50:240:50:28

..find things to do with their time?

0:50:300:50:32

I mean, it sounds pretty terrible, pretty terrifying to me.

0:50:320:50:34

You have a very pessimistic view of the future.

0:50:340:50:37

I hope you're wrong. I believe that someone, you know,

0:50:370:50:40

doing mechanical labour is not the best fulfilment

0:50:400:50:44

of their dreams and aspirations.

0:50:440:50:45

But the problem, I think,

0:50:450:50:47

or the thing that makes me pessimistic or nervous,

0:50:470:50:49

is that society will have to change dramatically,

0:50:490:50:52

and that's quite worrying.

0:50:520:50:53

Look, I believe society will have to change dramatically.

0:50:530:50:55

I think we've been through many of these before,

0:50:550:50:57

and, look, I understand that people have this spirit of,

0:50:570:51:01

"I'm going to hang onto the past at all costs,

0:51:010:51:04

"I hate progress and I hate change."

0:51:040:51:06

-But it's not that...

-And I hear that from you, I get it.

0:51:060:51:08

It's not that. It's not hating progress.

0:51:080:51:11

What if the progress that you're, not just you,

0:51:110:51:14

but the community here's creating, is not what other people want?

0:51:140:51:18

There are 40 million people in the US that live in poverty.

0:51:180:51:21

If technology can eliminate human suffering...

0:51:210:51:24

..we should do that. If technology can generate more wealth

0:51:250:51:28

and we can figure out how to distribute that better,

0:51:280:51:31

we should do that.

0:51:310:51:32

I think it's an important job for journalists

0:51:320:51:34

to try to ask about the negative possibilities of this stuff.

0:51:340:51:37

I think if you continue this thrust of, shouldn't we stop progress,

0:51:370:51:41

no-one's going to take you seriously,

0:51:410:51:43

because people want this stuff, and people don't...

0:51:430:51:45

People don't think that we should still have people in poverty.

0:51:450:51:48

People don't think that we should take away our iPhones

0:51:480:51:50

and take away Facebook.

0:51:500:51:52

So I think you can add a really important voice,

0:51:520:51:54

but I worry you're going in the wrong direction with this,

0:51:540:51:57

like, anti-progress angle.

0:51:570:51:59

Orcas Island, north of Seattle.

0:52:130:52:16

The edge of American civilisation.

0:52:180:52:20

I'm here to meet one former Silicon Valley insider

0:52:230:52:27

who fears where technological progress could be taking us.

0:52:270:52:30

Whenever I talk to normals, which is what they call you people,

0:52:320:52:35

or normies, OK, I almost feel like saying,

0:52:350:52:38

"Look, I'm from the future, believe me.

0:52:380:52:40

"I just got off a time machine called

0:52:400:52:42

"the flight from San Francisco."

0:52:420:52:44

VOICEOVER: Antonio Garcia Martinez

0:52:460:52:48

was a product manager at Facebook before he quit Silicon Valley.

0:52:480:52:53

I've seen what the world will look like in five to ten years.

0:52:530:52:56

You may not believe it, but it's coming.

0:52:560:52:59

And it's coming in the form of a self-driving truck

0:52:590:53:02

that's about to run you over.

0:53:020:53:03

How worried are you about this?

0:53:030:53:05

Oh, horribly, why do you think I'm here?

0:53:050:53:07

Why are we here?

0:53:070:53:09

In the ass end of the Northwest?

0:53:090:53:10

It's going to destroy the world.

0:53:100:53:12

So, this is it?

0:53:240:53:25

This is it.

0:53:250:53:27

So this is sort of the general area, this is my utility thing over here,

0:53:270:53:30

where I store a bunch of stuff.

0:53:300:53:31

That's going to be the future house site that we just walked through.

0:53:310:53:34

By the way, this is the throne room right here.

0:53:340:53:36

Composting bucket toilet for now.

0:53:360:53:37

Why did you choose this particular plot of land?

0:53:370:53:39

Because nobody knows about it.

0:53:390:53:41

Canada is a swim or a kayak's ride away if necessary.

0:53:410:53:45

Ideal climate, big community, self-sustaining food production.

0:53:450:53:49

And defensibility, in the case of things fragmenting for a while.

0:53:500:53:53

The AR15, the civilian version of the M4,

0:53:580:54:02

the standard issue service weapon of the US military.

0:54:020:54:05

-Is it loaded?

-Well, I don't know.

0:54:080:54:10

Jesus.

0:54:110:54:12

If things go bad in the future, what...

0:54:180:54:22

Is this going to be what you need?

0:54:220:54:23

Of course. In the post-America,

0:54:240:54:26

the 5.56 millimetre round will be the currency of the new America,

0:54:260:54:30

I guarantee you.

0:54:300:54:31

This is the tipi clearing,

0:54:360:54:37

this is a traditional Lakota Sioux tipi and we're going to

0:54:370:54:41

put this up today.

0:54:410:54:42

Why is it wobbling so much?

0:54:490:54:51

Back it up, back it up, right, right.

0:54:510:54:52

You might think it's silly that I have AR15s

0:54:540:54:56

and a well and solar panels,

0:54:560:54:57

but what do you have in the case of a crisis?

0:54:570:54:59

You're just betting that it doesn't happen, right?

0:54:590:55:01

-Yeah.

-And as we used to say at Goldman Sachs,

0:55:010:55:03

hope is a shitty hedge.

0:55:030:55:05

You have hope, that's all you have, you have hope.

0:55:050:55:07

Hope is a shitty hedge.

0:55:070:55:08

OK, OK, come over towards me.

0:55:110:55:12

So you think there are some people that are kind of in Silicon Valley,

0:55:140:55:18

-doing this too?

-Oh, absolutely, I'm not the only one.

0:55:180:55:20

-I'm not unique in any way.

-I wonder what other people in Silicon Valley

0:55:200:55:25

-might be doing.

-They have their own hideaways,

0:55:250:55:27

they buy land in other places and they've got a bunch of guns

0:55:270:55:29

and wells and all the rest of it.

0:55:290:55:31

It's kind of like this, maybe a little less rustic,

0:55:310:55:33

a little less hippie, but very similar.

0:55:330:55:35

But, hang on, I mean it sounds a little bit selfish...

0:55:350:55:38

..because what about the rest of us?

0:55:390:55:41

Life is short and we all die alone, I mean, there it is.

0:55:410:55:43

Silicon Valley is unleashing the next wave of disruption,

0:55:450:55:49

without knowing for sure whether the world will be made better

0:55:490:55:53

as a result.

0:55:530:55:54

What is at stake?

0:55:570:55:59

Well, I mean, there's 300 million guns in this country,

0:55:590:56:02

one for every man, woman and child, right?

0:56:020:56:04

And they're mostly in the hands of those

0:56:040:56:06

who are getting economically displaced.

0:56:060:56:09

There could be a violent revolt.

0:56:090:56:10

Why are you kind of speaking out about any of this stuff?

0:56:200:56:24

Well, because it's the only real debt

0:56:260:56:27

that I think technologists have.

0:56:270:56:29

Not enough of them are actually speaking out

0:56:290:56:31

and actually informing the general public.

0:56:310:56:33

You don't realise, we are in a race between technology and politics,

0:56:330:56:37

and the technologists are winning, they are way ahead.

0:56:370:56:39

They will destroy jobs and disrupt economies

0:56:390:56:42

way before we even react to them.

0:56:420:56:43

And what we really should be thinking is about that.

0:56:430:56:46

Preparing a survival plan IS extreme.

0:56:530:56:56

The coming wave of disruption COULD bring great benefits.

0:56:580:57:02

But there's a risk Silicon Valley's promise to build a better world

0:57:030:57:07

could inflict a nightmare future on millions of us.

0:57:070:57:11

Politics, in the end, has to be able to take control of this technology,

0:57:120:57:18

regulate it somehow, slow it down if that's what people want,

0:57:180:57:23

but make sure that the technology is being built for people,

0:57:230:57:28

in a way that people want, in a way that society wants,

0:57:280:57:31

and not just in the interests...

0:57:310:57:33

..of the tiny number of incredibly rich people

0:57:350:57:39

from the West Coast of America.

0:57:390:57:41

How did Silicon Valley become so influential?

0:57:480:57:51

The Open University has produced an interactive timeline

0:57:510:57:55

exploring the history of this place.

0:57:550:57:57

To find out more, visit...

0:57:570:57:59

..and follow the links to the Open University.

0:58:030:58:05

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